CVR Refining, LP (NYSE: CVRR), a refiner and marketer of petroleum
fuels, today announced net income of $174 million on net sales of
$1,857 million for the third quarter of 2018, compared to net
income of $70 million on net sales of $1,386 million for the third
quarter of 2017. Adjusted EBITDA for the 2018 third quarter was
$221 million compared to adjusted EBITDA of $139 million for the
2017 third quarter.
For the first nine months of 2018, net income was $439 million
on net sales of $5,139 million, compared to net income of $118
million on net sales of $4,148 million for the comparable period a
year earlier. Adjusted EBITDA for the first nine months of
2018 was $494 million, compared to adjusted EBITDA of $296 million
for the first nine months of 2017.
“CVR Refining reported solid results for the 2018 third
quarter,” said Dave Lamp, Chief Executive Officer of CVR Refining’s
general partner. “The quarter’s success was driven by stronger
crack spreads, reduced Renewable Identification Number (RIN) costs
and increased internal RIN generation, wide crude oil differentials
and reliable operations.
“Looking forward, we will remain focused on safe and reliable
operations while taking advantage of favorable product margins and
crude oil spreads,” Lamp said.
Consolidated Operations
Third quarter 2018 combined total throughput was approximately
219,000 barrels per day (bpd). Combined total throughput was
approximately 214,000 bpd for the same period in 2017.
Refining margin adjusted for FIFO impact per combined total
throughput, a non-GAAP financial measure, was $15.41 in the 2018
third quarter, compared to $13.05 during the same period in 2017.
Direct operating expenses (exclusive of depreciation and
amortization), excluding major scheduled turnaround expenses, per
combined total throughput, for the 2018 third quarter were $4.17,
compared to $5.02 in the third quarter of 2017.
Distributions
CVR Refining also announced today a third quarter 2018
distribution of 90 cents per common unit. The distribution, as set
by the board of CVR Refining GP, LLC, the general partner of CVR
Refining, will be paid on Nov. 12, 2018, to unitholders of record
on Nov. 5, 2018. CVR Refining’s third quarter cash distribution
brings the cumulative cash distributions paid or declared for the
first nine months of 2018 to $2.07 per common unit.
CVR Refining is a variable distribution master limited
partnership. As a result, its distributions, if any, will vary from
quarter to quarter due to several factors, including, but not
limited to, its operating performance, fluctuations in the prices
paid for crude oil and other feedstocks, as well as the prices
received for finished products, RIN costs and cash reserves deemed
necessary or appropriate by the board of directors of its general
partner.
Third Quarter 2018 Earnings Conference Call
CVR Refining previously announced that it will host its third
quarter 2018 Earnings Conference Call on Thursday, Oct. 25, at 1
p.m. Eastern. The Earnings Conference Call may also include
discussion of the partnership’s developments, forward-looking
information and other material information about business and
financial matters.
The third quarter 2018 Earnings Conference Call will be webcast
live and can be accessed on the Investor Relations section of CVR
Refining’s website at www.CVRRefining.com. For investors or
analysts who want to participate during the call, the dial-in
number is (877) 407-8289. The webcast will be archived and
available through Nov. 8 at
https://edge.media-server.com/m6/p/6g5xcnpz. A repeat of the call
can be accessed through Nov. 8 by dialing (877) 660-6853,
conference ID 13683848.
Qualified NoticeThis release serves as a
qualified notice to nominees and brokers as provided for under
Treasury Regulation Section 1.1446-4(b). Please note that 100
percent of CVR Refining’s distributions to foreign investors are
attributable to income that is effectively connected with a United
States trade or business. Accordingly, CVR Refining’s distributions
to foreign investors are subject to federal income tax withholding
at the highest effective tax rate.
Forward-Looking StatementsThis news release
contains forward-looking statements. Statements concerning current
estimates, expectations and projections about future results,
performance, prospects, opportunities, plans, actions and events
and other statements, concerns, or matters that are not historical
facts are “forward-looking statements,” as that term is defined
under the federal securities laws. These forward-looking statements
include, but are not limited to, statements regarding future: crude
oil differentials or spreads; RINs, crude oil, feedstock and
product prices; distributions; operating performance; reserves;
fourth quarter performance including throughput, production, direct
operating expenses, capital spending and depreciation; safe and
reliable operations; favorable product margins; and other matters.
You can generally identify forward-looking statements by our use of
forward-looking terminology such as “outlook,” “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “seek,” “should,”
or “will,” or the negative thereof or other variations thereon or
comparable terminology. These forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. Investors are cautioned that
various factors may affect these forward-looking statements,
including (among others) price volatility of crude oil, other
feedstocks and refined products; our ability to make cash
distributions; potential operating hazards; costs of compliance
with existing, or compliance with new, laws and regulations and
potential liabilities arising therefrom; and other risks. For
additional discussion of risk factors which may affect our results,
please see the risk factors and other disclosures included in our
most recent Annual Report on Form 10-K, any subsequently filed
Quarterly Reports on Form 10-Q and our other SEC filings. These
risks may cause our actual results, performance or achievements to
differ materially from any future results, performance or
achievements expressed or implied by these forward-looking
statements. Given these risks and uncertainties, you are cautioned
not to place undue reliance on such forward-looking statements. The
forward-looking statements included in this news release are made
only as of the date hereof. CVR Refining disclaims any intention or
obligation to update publicly or revise its forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by law.
About CVR Refining, LPHeadquartered in Sugar
Land, Texas, CVR Refining, LP is an independent downstream energy
limited partnership that owns refining and related logistics assets
in the Midcontinent United States. CVR Refining’s subsidiaries
operate a complex full coking medium-sour crude oil refinery with a
capacity of 132,000 barrels per calendar day (bpcd) in Coffeyville,
Kansas, and a complex crude oil refinery with a capacity of 74,500
bpcd in Wynnewood, Oklahoma. CVR Refining’s subsidiaries also
operate and invest in supporting logistics assets, including
approximately 570 miles of owned, leased and joint venture
pipelines, approximately 130 crude oil transports, a network of
strategically located crude oil gathering tank farms, and
approximately 6.4 million barrels of owned and leased crude oil
storage capacity.
For further information, please contact:
Investor Contact:Jay FinksCVR Refining, LP(281)
207-3588IR@CVRRefining.com
Media Relations:Brandee StephensCVR Refining,
LP(281) 207-3516MediaRelations@CVRRefining.com
CVR Refining, LP
Financial and Operational Data (all information in this
release is unaudited other than the balance sheet data as of
December 31, 2017).
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except per unit data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Statement of Operations Data: |
|
|
|
|
|
|
|
Net sales |
$ |
1,857 |
|
|
$ |
1,386 |
|
|
$ |
5,139 |
|
|
$ |
4,148 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Cost of materials and other |
1,544 |
|
|
1,114 |
|
|
4,315 |
|
|
3,524 |
|
Direct operating expenses (1)(2) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Cost of sales |
1,662 |
|
|
1,266 |
|
|
4,685 |
|
|
3,929 |
|
Selling, general and administrative expenses (1) |
18 |
|
|
19 |
|
|
56 |
|
|
58 |
|
Depreciation and amortization |
1 |
|
|
1 |
|
|
3 |
|
|
3 |
|
Loss on asset disposals |
— |
|
|
1 |
|
|
5 |
|
|
1 |
|
Operating income |
176 |
|
|
99 |
|
|
390 |
|
|
157 |
|
Interest expense, net |
(10 |
) |
|
(12 |
) |
|
(32 |
) |
|
(34 |
) |
Gain (loss) on derivatives, net |
5 |
|
|
(17 |
) |
|
75 |
|
|
(5 |
) |
Other income, net |
3 |
|
|
— |
|
|
6 |
|
|
— |
|
Net income |
$ |
174 |
|
|
$ |
70 |
|
|
$ |
439 |
|
|
$ |
118 |
|
|
|
|
|
|
|
|
|
Net income per common unit - basic and diluted |
$ |
1.18 |
|
|
$ |
0.47 |
|
|
$ |
2.97 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA* |
$ |
221 |
|
|
$ |
139 |
|
|
$ |
494 |
|
|
$ |
296 |
|
Available cash for distribution* |
133 |
|
|
139 |
|
|
306 |
|
|
139 |
|
|
|
|
|
|
|
|
|
Weighted average, number of common units outstanding: |
|
|
|
|
|
|
|
Basic and diluted |
147.6 |
|
|
147.6 |
|
|
147.6 |
|
|
147.6 |
|
______________________________ *
See “Use of Non-GAAP Financial Measures” below.
(1) Direct operating expenses and selling, general and
administrative expenses for the three and nine months ended
September 30, 2018 and 2017 are shown exclusive of
depreciation and amortization.
(2) Direct operating expenses includes $1 million and $1 million
of major turnaround expenses during the three and nine months ended
September 30, 2018, respectively. Direct operating expenses
includes $22 million and $37 million of major turnaround expenses
during the three and nine months ended September 30, 2017,
respectively.
(In millions) |
As of September 30,
2018 |
|
As of December 31,
2017 |
Balance Sheet Data: |
|
|
|
Cash and cash equivalents |
$ |
398 |
|
|
$ |
174 |
|
Working capital |
482 |
|
|
218 |
|
Total assets |
2,505 |
|
|
2,270 |
|
Total debt, including current portion |
539 |
|
|
541 |
|
Total partners’ capital |
1,446 |
|
|
1,247 |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Cash Flow Data: |
|
|
|
|
|
|
|
Net cash flow provided by (used in): |
|
|
|
|
|
|
|
Operating activities |
$ |
256 |
|
|
$ |
63 |
|
|
$ |
514 |
|
|
$ |
314 |
|
Investing activities |
(18 |
) |
|
(18 |
) |
|
(49 |
) |
|
(67 |
) |
Financing activities |
(98 |
) |
|
— |
|
|
(241 |
) |
|
(1 |
) |
Net increase in cash and cash equivalents |
$ |
140 |
|
|
$ |
45 |
|
|
$ |
224 |
|
|
$ |
246 |
|
|
|
|
|
|
|
|
|
Capital expenditures for property, plant and equipment: |
|
|
|
|
|
|
|
Maintenance |
$ |
16 |
|
|
$ |
15 |
|
|
$ |
39 |
|
|
$ |
58 |
|
Growth |
2 |
|
|
4 |
|
|
11 |
|
|
8 |
|
Total capital expenditures |
$ |
18 |
|
|
$ |
19 |
|
|
$ |
50 |
|
|
$ |
66 |
|
Operating Data
The following tables set forth information about our
consolidated operations and our Coffeyville and Wynnewood
refineries. Reconciliations of certain non-GAAP financial measures
are provided under “Use of Non-GAAP Financial Measures” below.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In dollars per total throughput barrel) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Key Operating Statistics: |
|
|
|
|
|
|
|
Gross profit |
$ |
9.70 |
|
|
$ |
6.07 |
|
|
$ |
7.99 |
|
|
$ |
3.61 |
|
Refining margin* |
$ |
15.54 |
|
|
$ |
13.81 |
|
|
$ |
14.50 |
|
|
$ |
10.32 |
|
FIFO impact, (favorable) unfavorable |
$ |
(0.13 |
) |
|
$ |
(0.76 |
) |
|
$ |
(0.79 |
) |
|
$ |
0.01 |
|
Refining margin adjusted for FIFO impact* |
$ |
15.41 |
|
|
$ |
13.05 |
|
|
$ |
13.71 |
|
|
$ |
10.33 |
|
Direct operating expenses and major turnaround
expenses |
$ |
4.23 |
|
|
$ |
6.12 |
|
|
$ |
4.79 |
|
|
$ |
5.11 |
|
Direct operating expenses excluding major turnaround
expenses |
$ |
4.17 |
|
|
$ |
5.02 |
|
|
$ |
4.77 |
|
|
$ |
4.49 |
|
______________________________ *
See “Use of Non-GAAP Financial Measures” below.
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In dollars per barrel) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Market Indicators: |
|
|
|
|
|
|
|
West Texas Intermediate (WTI) NYMEX |
$ |
69.43 |
|
|
$ |
48.20 |
|
|
$ |
66.79 |
|
|
$ |
49.36 |
|
Crude Oil Differentials: |
|
|
|
|
|
|
|
WTI less WTS (light/medium sour) |
14.26 |
|
|
0.97 |
|
|
8.14 |
|
|
1.15 |
|
WTI less WCS (heavy sour) |
27.76 |
|
|
10.48 |
|
|
23.77 |
|
|
11.42 |
|
WTI less Condensate |
0.37 |
|
|
0.12 |
|
|
0.40 |
|
|
0.12 |
|
Midland Cushing Differential |
14.33 |
|
|
0.79 |
|
|
7.69 |
|
|
0.54 |
|
NYMEX Crack Spreads: |
|
|
|
|
|
|
|
Gasoline |
16.96 |
|
|
20.42 |
|
|
17.69 |
|
|
17.74 |
|
Heating Oil |
22.03 |
|
|
21.05 |
|
|
21.59 |
|
|
17.24 |
|
NYMEX 2-1-1 Crack Spread |
19.50 |
|
|
20.73 |
|
|
19.64 |
|
|
17.49 |
|
PADD II Group 3 Basis: |
|
|
|
|
|
|
|
Gasoline |
(0.13 |
) |
|
(1.18 |
) |
|
(2.16 |
) |
|
(2.37 |
) |
Ultra Low Sulfur Diesel |
0.89 |
|
|
0.85 |
|
|
0.08 |
|
|
(0.44 |
) |
PADD II Group 3 Product Crack Spread: |
|
|
|
|
|
|
|
Gasoline |
16.83 |
|
|
19.23 |
|
|
15.53 |
|
|
15.37 |
|
Ultra Low Sulfur Diesel |
22.92 |
|
|
21.90 |
|
|
21.67 |
|
|
16.80 |
|
PADD II Group 3 2-1-1 |
$ |
19.88 |
|
|
$ |
20.57 |
|
|
$ |
18.60 |
|
|
$ |
16.09 |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Refining Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
8,425 |
|
|
3.8 |
|
|
1 |
|
|
- |
|
|
13,156 |
|
|
6.3 |
|
|
2,893 |
|
|
1.3 |
|
Sweet |
193,727 |
|
|
88.5 |
|
|
196,341 |
|
|
91.9 |
|
|
179,964 |
|
|
86.5 |
|
|
195,857 |
|
|
88.5 |
|
Heavy sour |
6,746 |
|
|
3.1 |
|
|
6,751 |
|
|
3.2 |
|
|
4,518 |
|
|
2.2 |
|
|
11,643 |
|
|
5.3 |
|
Total crude oil throughput |
208,898 |
|
|
95.4 |
|
|
203,093 |
|
|
95.1 |
|
|
197,638 |
|
|
95.0 |
|
|
210,393 |
|
|
95.1 |
|
All other feedstocks and blendstocks |
10,008 |
|
|
4.6 |
|
|
10,513 |
|
|
4.9 |
|
|
10,454 |
|
|
5.0 |
|
|
10,943 |
|
|
4.9 |
|
Total throughput |
218,906 |
|
|
100.0 |
|
|
213,606 |
|
|
100.0 |
|
|
208,092 |
|
|
100.0 |
|
|
221,336 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
111,087 |
|
|
50.8 |
|
|
105,712 |
|
|
49.5 |
|
|
103,258 |
|
|
49.6 |
|
|
112,268 |
|
|
50.6 |
|
Distillate |
94,157 |
|
|
43.0 |
|
|
89,655 |
|
|
42.0 |
|
|
89,325 |
|
|
42.9 |
|
|
92,046 |
|
|
41.5 |
|
Other (excluding internally produced fuel) |
13,497 |
|
|
6.2 |
|
|
18,107 |
|
|
8.5 |
|
|
15,486 |
|
|
7.5 |
|
|
17,385 |
|
|
7.9 |
|
Total refining production (excluding internally
produced fuel) |
218,741 |
|
|
100.0 |
|
|
213,474 |
|
|
100.0 |
|
|
208,069 |
|
|
100.0 |
|
|
221,699 |
|
|
100.0 |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Coffeyville Refinery Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
273 |
|
|
0.2 |
|
|
1 |
|
|
- |
|
|
6,448 |
|
|
5.1 |
|
|
2,893 |
|
|
2.1 |
|
Sweet |
127,792 |
|
|
90.3 |
|
|
121,709 |
|
|
89.6 |
|
|
109,937 |
|
|
86.4 |
|
|
116,468 |
|
|
83.7 |
|
Heavy sour |
6,746 |
|
|
4.8 |
|
|
6,751 |
|
|
5.0 |
|
|
4,518 |
|
|
3.6 |
|
|
11,643 |
|
|
8.4 |
|
Total crude oil throughput |
134,811 |
|
|
95.3 |
|
|
128,461 |
|
|
94.6 |
|
|
120,903 |
|
|
95.1 |
|
|
131,004 |
|
|
94.2 |
|
All other feedstocks and blendstocks |
6,664 |
|
|
4.7 |
|
|
7,415 |
|
|
5.4 |
|
|
6,238 |
|
|
4.9 |
|
|
8,124 |
|
|
5.8 |
|
Total throughput |
141,475 |
|
|
100.0 |
|
|
135,876 |
|
|
100.0 |
|
|
127,141 |
|
|
100.0 |
|
|
139,128 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
72,337 |
|
|
50.7 |
|
|
67,598 |
|
|
49.1 |
|
|
62,543 |
|
|
48.7 |
|
|
70,697 |
|
|
50.1 |
|
Distillate |
60,521 |
|
|
42.4 |
|
|
57,654 |
|
|
41.9 |
|
|
54,914 |
|
|
42.7 |
|
|
58,927 |
|
|
41.7 |
|
Other (excluding internally produced fuel) |
9,900 |
|
|
6.9 |
|
|
12,355 |
|
|
9.0 |
|
|
11,066 |
|
|
8.6 |
|
|
11,619 |
|
|
8.2 |
|
Total refining production (excluding internally
produced fuel) |
142,758 |
|
|
100.0 |
|
|
137,607 |
|
|
100.0 |
|
|
128,523 |
|
|
100.0 |
|
|
141,243 |
|
|
100.0 |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
% |
|
|
|
% |
|
|
|
% |
|
|
|
% |
Wynnewood Refinery Throughput and Production Data
(bpd): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Throughput: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensate |
8,152 |
|
|
10.5 |
|
|
- |
|
|
- |
|
|
6,708 |
|
|
8.3 |
|
|
- |
|
|
- |
|
Sweet |
65,936 |
|
|
85.2 |
|
|
74,632 |
|
|
96.0 |
|
|
70,026 |
|
|
86.5 |
|
|
79,389 |
|
|
96.6 |
|
Total crude oil throughput |
74,088 |
|
|
95.7 |
|
|
74,632 |
|
|
96.0 |
|
|
76,734 |
|
|
94.8 |
|
|
79,389 |
|
|
96.6 |
|
All other feedstocks and blendstocks |
3,344 |
|
|
4.3 |
|
|
3,098 |
|
|
4.0 |
|
|
4,216 |
|
|
5.2 |
|
|
2,819 |
|
|
3.4 |
|
Total throughput |
77,432 |
|
|
100.0 |
|
|
77,730 |
|
|
100.0 |
|
|
80,950 |
|
|
100.0 |
|
|
82,208 |
|
|
100.0 |
|
Production: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gasoline |
38,750 |
|
|
51.0 |
|
|
38,114 |
|
|
50.2 |
|
|
40,715 |
|
|
51.2 |
|
|
41,571 |
|
|
51.6 |
|
Distillate |
33,636 |
|
|
44.3 |
|
|
32,001 |
|
|
42.2 |
|
|
34,411 |
|
|
43.2 |
|
|
33,119 |
|
|
41.2 |
|
Other (excluding internally produced fuel) |
3,597 |
|
|
4.7 |
|
|
5,752 |
|
|
7.6 |
|
|
4,420 |
|
|
5.6 |
|
|
5,766 |
|
|
7.2 |
|
Total refining production (excluding internally
produced fuel) |
75,983 |
|
|
100.0 |
|
|
75,867 |
|
|
100.0 |
|
|
79,546 |
|
|
100.0 |
|
|
80,456 |
|
|
100.0 |
|
Use of Non-GAAP Financial Measures
Our management uses certain non-GAAP performance measures to
analyze operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our GAAP financial information presented in
accordance with U.S. GAAP. These financial and operational non-GAAP
measures are important factors in assessing our operating results
and profitability and include performance and liquidity measures
along with certain key operating metrics.
Performance and Liquidity Measures
We use the following performance and liquidity measures:
EBITDA is a performance measure representing net income before
(i) interest expense and other financing costs, net of interest
income, (ii) income tax expense and (iii) depreciation and
amortization.
Adjusted EBITDA. Adjusted EBITDA is a performance measure
representing EBITDA adjusted for (i) (favorable) unfavorable FIFO
impacts associated with our crude oil and refined product
inventories, (ii) major turnaround expenses (that many of our
competitors capitalize and thereby exclude from their measures of
EBITDA and adjusted EBITDA), (iii) (gain) loss on derivatives, net
and (iv) current period settlements on derivative contracts.
Adjusted EBITDA represents the starting point for determining of
available cash for distribution. Refer to discussion below for the
Refining margin, adjusted for FIFO impact non-GAAP measure for
discussion of why management adjusted for the FIFO impact of our
inventories. We exclude major turnaround expenses because these
amounts are required expenditures for our refineries, are not
closely related to current period operations, and many of our peer
companies capitalize these amounts thereby excluding these amounts
from their EBITDA-related measures. For derivatives, we adjust
EBITDA to exclude the unrealized or non-cash portion of our
derivative gain or loss from our results in order to arrive at our
starting point for available cash for distribution.
Refining margin. This performance measure represents the
difference between net sales and cost of materials and other as
reported on our Condensed Consolidated Statements of
Operations.
Refining margin, adjusted for FIFO impact. This performance
measure represents our refining margin adjusted to exclude the
impact of price changes in our crude oil and refined products
inventories. Under our FIFO accounting method for crude oil and
refined products, changes in crude oil prices can cause
fluctuations in the inventory valuation of our raw material, work
in process and finished good inventories, thereby resulting in a
favorable FIFO impact when crude oil prices increase and an
unfavorable FIFO impact when crude oil prices decrease. In periods
of significant price volatility, these price changes have a
significant impact on the valuation on our inventories and thus our
results.
Available cash for distribution. This performance and liquidity
measure is equal to Adjusted EBITDA reduced for cash needed for (i)
debt service, (ii) reserves for environmental and maintenance
capital expenditures, (iii) reserves for major turnaround
expenses and, to the extent applicable, (iv) reserves for future
operating or capital needs that the board of directors of our
general partner deems necessary or appropriate, if any. Available
cash for distribution may be increased by the release of previously
established cash reserves, if any, and other excess cash, at the
discretion of the board of directors of our general partner.
Operating Metrics
During the second quarter of 2018, we changed the metrics
discussed below from a crude oil throughput barrel basis to a total
throughput barrel basis. Prior period information has been revised
to conform to current presentation.
Refining margin and refining margin adjusted for FIFO impact per
total throughput barrel. For both refining margin and refining
margin adjusted for FIFO impact, we present these measures on a per
total throughput barrel basis. In order to calculate these non-GAAP
operating metrics, we utilize the total dollar figures for refining
margin and refining margin adjusted for FIFO impact, as derived
above and divide by the applicable number of total throughput
barrels for the period.
Direct operating expenses, excluding major turnaround expenses,
per total throughput barrel. We provide this performance measure to
exclude major turnaround expenses from the reported amounts of
direct operating expense during a given period. Major turnaround
expenses are required are not directly correlated to our current
period operations and thus excluding them provides investors and
analysts with the current period cost, exclusive of depreciation
and amortization, we incur to convert a barrel of crude oil into
refined product.
We present these measures because we believe they may help
investors, analysts, lenders and ratings agencies analyze our
results of operations and liquidity in conjunction with our U.S.
GAAP results, including but not limited to our operating
performance as compared to other publicly traded companies in the
refining industry, without regard to historical cost basis or
financing methods and our ability to incur and service debt and
fund capital expenditures. Non-GAAP measures have important
limitations as analytical tools, because they exclude some, but not
all, items that affect net earnings and operating income. These
measures should not be considered substitutes for their most
directly comparable U.S. GAAP financial measures.
A reconciliation of net income to EBITDA and EBITDA to Adjusted
EBITDA for the three and nine months ended September 30, 2018
and 2017 is as follows:
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net income |
$ |
174 |
|
|
$ |
70 |
|
|
$ |
439 |
|
|
$ |
118 |
|
Add: |
|
|
|
|
|
|
|
Interest expense, net |
10 |
|
|
12 |
|
|
32 |
|
|
34 |
|
Depreciation and amortization |
34 |
|
|
33 |
|
|
101 |
|
|
100 |
|
EBITDA |
218 |
|
|
115 |
|
|
572 |
|
|
252 |
|
Add: |
|
|
|
|
|
|
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Major turnaround expenses |
1 |
|
|
22 |
|
|
1 |
|
|
37 |
|
Gain (loss) on derivatives, net |
(5 |
) |
|
17 |
|
|
(75 |
) |
|
5 |
|
Current period settlements on derivative contracts
(1) |
10 |
|
|
— |
|
|
41 |
|
|
1 |
|
Adjusted EBITDA |
$ |
221 |
|
|
$ |
139 |
|
|
$ |
494 |
|
|
$ |
296 |
|
_________________________
- Represents the portion of (gain) loss on derivatives, net
related to contracts that matured during the respective periods and
settled with counterparties. There are no premiums paid or received
at inception of the derivative contracts. Upon settlement there is
no cost recovery associated with these contracts.
A reconciliation of Adjusted EBITDA to Available cash for
distribution is as follows:
(In millions, except per unit data) |
Three Months Ended September
30, 2018 |
|
Nine Months Ended September
30, 2018 |
Adjusted EBITDA |
$ |
221 |
|
|
$ |
494 |
|
Adjustments: |
|
|
|
Less: |
|
|
|
Cash needs for debt service |
(10 |
) |
|
(30 |
) |
Reserves for environmental and maintenance capital
expenditures |
(25 |
) |
|
(75 |
) |
Reserves for major turnaround expenses |
(15 |
) |
|
(45 |
) |
Reserves for projects |
(38 |
) |
|
(38 |
) |
Available cash for distribution |
$ |
133 |
|
|
$ |
306 |
|
|
|
|
|
Distribution declared, per common unit |
$ |
0.90 |
|
|
$ |
2.07 |
|
Common units outstanding |
147.6 |
|
|
147.6 |
|
The calculation of refining margin, refining margin adjusted for
FIFO impact, refining margin per total throughput barrel, refining
margin adjusted for FIFO impact per total throughput barrel and
direct operating expenses (exclusive of depreciation and
amortization and major turnaround expenses) per total throughput
barrel (each a non-GAAP financial measure), including a
reconciliation to the most directly comparable GAAP financial
measure for the three and nine months ended September 30, 2018
and 2017 is as follows:
Consolidated Operating Data |
|
|
|
|
|
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales |
$ |
1,857 |
|
|
$ |
1,386 |
|
|
$ |
5,139 |
|
|
$ |
4,148 |
|
Cost of materials and other |
1,544 |
|
|
1,114 |
|
|
4,315 |
|
|
3,524 |
|
Direct operating expenses (exclusive of depreciation and
amortization as reflected below) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Gross profit |
195 |
|
|
120 |
|
|
454 |
|
|
219 |
|
Add: |
|
|
|
|
|
|
|
Direct operating expenses (exclusive of depreciation and
amortization as reflected below) |
85 |
|
|
120 |
|
|
272 |
|
|
308 |
|
Depreciation and amortization |
33 |
|
|
32 |
|
|
98 |
|
|
97 |
|
Refining margin |
313 |
|
|
272 |
|
|
824 |
|
|
624 |
|
FIFO impact, (favorable) unfavorable |
(3 |
) |
|
(15 |
) |
|
(45 |
) |
|
1 |
|
Refining margin adjusted for FIFO impact |
$ |
310 |
|
|
$ |
257 |
|
|
$ |
779 |
|
|
$ |
625 |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Total throughput barrels per day |
218,906 |
|
|
213,606 |
|
|
208,092 |
|
|
221,336 |
|
Days in the period |
92 |
|
|
92 |
|
|
273 |
|
|
273 |
|
Total throughput barrels |
20,139,352 |
|
|
19,651,752 |
|
|
56,809,116 |
|
|
60,424,728 |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except for per throughput barrel data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Refining margin |
$ |
313 |
|
|
$ |
272 |
|
|
$ |
824 |
|
|
$ |
624 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Refining margin per total throughput barrel |
$ |
15.54 |
|
|
$ |
13.81 |
|
|
$ |
14.50 |
|
|
$ |
10.32 |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except for per throughput barrel data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Refining margin adjusted for FIFO impact |
$ |
310 |
|
|
$ |
257 |
|
|
$ |
779 |
|
|
$ |
625 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Refining margin adjusted for FIFO impact per total
throughput barrel |
$ |
15.41 |
|
|
$ |
13.05 |
|
|
$ |
13.71 |
|
|
$ |
10.33 |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
(In millions, except for per throughput barrel data) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Direct operating expenses (exclusive of depreciation and
amortization) |
$ |
85 |
|
|
$ |
120 |
|
|
$ |
272 |
|
|
$ |
308 |
|
Major turnaround expenses |
1 |
|
|
22 |
|
|
1 |
|
|
37 |
|
Direct operating expenses (1) |
$ |
84 |
|
|
$ |
98 |
|
|
$ |
271 |
|
|
$ |
271 |
|
Divided by: total throughput barrels |
20 |
|
|
20 |
|
|
57 |
|
|
60 |
|
Direct operating expenses, excluding major
turnaround expenses, per total throughput barrel |
$ |
4.17 |
|
|
$ |
5.02 |
|
|
$ |
4.77 |
|
|
$ |
4.49 |
|
Q4 2018 Outlook. The table
below summarizes our outlook for certain refining statistics and
financial information for the fourth quarter of 2018. See “forward
looking statements.”
|
Q4 2018 |
|
Low |
|
High |
Refinery Statistics: |
|
|
|
Total throughput (bpd) |
215,000 |
|
|
225,000 |
|
|
|
|
|
Direct operating expenses (1) (in millions) |
85 |
|
|
95 |
|
|
|
|
|
Total capital spending (in millions) |
30 |
|
|
40 |
|
_________________________(1) Direct operating expenses are shown
exclusive of depreciation and amortization and major turnaround
expenses.
Cvr Refining, LP Common Units Representing Limited Partner Interests (NYSE:CVRR)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Cvr Refining, LP Common Units Representing Limited Partner Interests (NYSE:CVRR)
과거 데이터 주식 차트
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